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Nearly half of employers report staff wellbeing boosts productivity

by Benefits Expert
01/07/2025
Happy employees, healthy work, resilience
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Almost half (47 percent) of employers report increased workforce productivity when their employees’ health and wellbeing is supported, according to new research with 500 UK HR decision-makers. 

The research, from Grid, the industry body for the group risk sector, shows that 63 percent of employers actively measure the impact of health and wellbeing support in the workplace. Among those, almost all, 98 percent reported a positive impact on their business.

Productivity wasn’t the only benefit employers reported, with 42 percent of respondents reporting that supporting employee wellbeing helps demonstrate that the business genuinely cares, which in turn boosts loyalty and engagement. A similar proportion (41 percent) noted that a holistic approach to health and wellbeing helps them manage absence, both by reducing the number and length of absences and helping employees return to work more quickly.

Employers also recognise the wider impact on business performance, with 38 percent believing they are more likely to succeed financially when their employees are fit and healthy. A similar proportion (37 percent) said that supporting staff, including their health and wellbeing, is integral to their company ethos and helps fulfil business objectives.

Further results showed that a third have seen a positive return on investment and or positive financial impact. Thirty-two percent think that it helps differentiate them from their competitors, supporting recruitment and retention, and 31 percent say that potential clients are interested in how well their company looks after staff, and that having a good policy in place helps them win clients.

Grid has urged employers who do not currently measure the outcomes of their wellbeing initiatives to start doing so, suggesting they may be surprised by the value they uncover.

Katharine Moxham, Grid spokesperson, said: “Supporting the wellbeing of staff is a virtuous circle: staff are more likely to remain in the business and work more productively. This in turn means that the business is financially successful, but also seen to be having a positive impact in other areas, which in turn attracts new clients and new staff. With business purse-strings now tighter than ever, measuring the impact of supporting staff has never been more important to help HR departments retain their benefits budget and look after their people.”

Jane Hulme, HR director at Unum UK, also welcomed the research findings, calling it a positive shift from good intentions to evidence-based action. 

“According to research from WPI Economics commissioned by Unum, employees with access to a comprehensive benefits package are 34 percent less likely to be seeking new employment opportunities, strengthening retention in today’s competitive market,” she said.

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“Capturing data on all aspects of wellbeing (emotional, physical, financial and social) using data such as attendance, engagement and wellbeing surveys alongside insights from wellbeing apps and employee assistance programmes helps businesses create intersectional strategies around what truly matters to their people. This approach leads to happier, healthier, and more productive teams, while also enabling employers to demonstrate return on investment and tailor their benefits to what employees actually need and want, both now and in the future.”

Hulme added: “According to our previous research, 58 percent of employees say that improved workplace health and wellbeing services would reduce absenteeism and enhance productivity. That’s a clear signal that smarter investment in wellbeing can reshape not only workforce culture but business outcomes too.”

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Benefits Unboxed
Benefits Unboxed

The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
byBenefits Expert from Definite Article Media

As the professionals responsible for helping their organisations navigate NI hikes, rising employee stress levels and looming redundancies, the pressure on HR, reward and benefits teams has never been greater. 

HR is expected to lead with strength and compassion. But who is supporting the supporters?

In this episode of Benefits Unboxed, co-hosts Claire Churchard, Carole Goldsmith and Steve Herbert explore the emotional and ethical pressures HR face today, from managing redundancies to implementing complex legislation. They discuss why HR’s own wellbeing may not be the first topic of conversation, the risks that poses to employers, and the practical steps businesses can take to better support the wellbeing of the people who support everyone else.

This conversation shines a light on the resilience of the profession and why looking after HR is not just the right thing to do, but a business imperative.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
22/05/2025
Benefits Expert from Definite Article Media
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